FTSE seen opening higher

Reuters - 37 mins ago

LONDON (Reuters) - The FTSE 100 index is seen opening 48-100 points higher on Tuesday by financial bookmakers, bouncing back after Monday's savage sell-off with some bargain hunting possible after Wall Street recovered from its lowest levels overnight.

The UK blue chip index closed a massive 391.1 points lower on Monday at 4,589.2, down 7.8 percent, its biggest one-day points falls ever.

"The FTSE is currently indicating a higher opening, as traders look through yesterday's wreckage for possible investment opportunities," said David Evans, market analyst at BetOnMarkets.com.

"The equities market might get another boost before the opening, as analysts expect that the UK industrial production numbers will come out better then expected. We are looking for a big pop at the open," Evans added.

U.S. stocks slid for a fourth straight session Monday, pulling the Dow below 10,000 for the first time in four years, on fears the global economy was hurtling into recession despite government efforts to contain the fast-spreading financial crisis.

However the Dow ended well above its hefty session lows and financial bookmakers currently expect the U.S. blue chip index to bounce back above the 10,000 level on Tuesday.

"If the Dow Jones opened now, the quote would read 1,0069, which is a gain of 120 points from yesterday's close," said Tom Hougaard, chief market strategist at Ciy Index.

Asian markets were mixed with Australian stocks rebounding to close almost 2 per cent higher after the Reserve Bank of Australia slashed interest rates by 100 basis points, double the amount expected.

UK stocks to watch on Tuesday are:

BP

Kazakhstan's state oil and gas company KazMunaiGas said on Tuesday it was interested in buying BP's stake in the Caspian Pipeline Consortium (CPC), which pumps crude from Kazakhstan to the Black Sea.

EURASIAN NATURAL RESOURCES

The Kazakh miner plans to nearly double investment in new projects to $6.9 billion (3.9 billion pounds), a senior manager was quoted as saying on Tuesday.

REED ELSEVIER

The financing package offered by Reed Elsevier in the sale of its trade publication unit might come in smaller than expected, causing bidders to reexamine their offers, a source familiar with the matter said on Monday.

AVIVA

The insurer has moved to ease fears that at least 30 percent had been wiped off its 1.8 billion pound capital surplus in recent months, by saying it still has considerable reserves, the Daily Telegraph said. Deteriorating market conditions and the continuing economic meltdown have prompted the company to shelve deal-making activity, says the Daily Mail.

TUI TRAVEL

Royal Caribbean Cruises said it has agreed to sell its 50 percent stake in Island Cruises to a unit of tour operator TUI Travel , which owns the other half.

ENODIS

The U.S. Justice Department said on Monday it would require Manitowoc Co Inc to divest Enodis' U.S. ice machine business as part of a settlement involving Manitowoc's purchase of Enodis.

MICHAEL PAGE

The recruitment firm is due to issue third-quarter results

MOUCHEL

The company is scheduled to release first-half results.

N BROWN GROUP

The catalogue retailer is due to post first-half results.

NORTHERN FOODS

The food producer is scheduled to issue a trading update.

VICTREX

The chemicals group is due to issue a trading update.

IG GROUP

The financial bookmaker is to hold its annual shareholders meeting.

(Reporting by Jon Hopkins; Editing by Quentin Bryar)

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